On the stability of a certain Keynes-Metzler-Goodwin monetary growth model
The article has three aims. The first aim is to develop an improved version of the Keynes-Metzler-Goodwin (the KMG) monetary growth model originally presented and analysed in a series of publications by Carl Chiarella, Peter Flaschel and Willi Semler. The improvement of the model is obtained by modi...
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| Format: | Article |
| Language: | English |
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Sciendo
2023-04-01
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| Series: | Economics and Business Review |
| Subjects: | |
| Online Access: | https://doi.org/10.18559/ebr.2023.1.2 |
| _version_ | 1797817394759991296 |
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| author | Sołtysiak Damian |
| author_facet | Sołtysiak Damian |
| author_sort | Sołtysiak Damian |
| collection | DOAJ |
| description | The article has three aims. The first aim is to develop an improved version of the Keynes-Metzler-Goodwin (the KMG) monetary growth model originally presented and analysed in a series of publications by Carl Chiarella, Peter Flaschel and Willi Semler. The improvement of the model is obtained by modifying some of its equations in a way which ensures that they reflect real macroeconomic dependencies more properly. The equations that have been modified describe final demand expectations, determinants of production decisions, fixed capital accumulation, tax revenues, government budget deficit and money demand. The second aim is to transform the model into an intensive form described by seven non-linear differential equations and determine its unique steady state which shows proportions between variables on the balanced growth path. The third ultimate aim is to present a mathematical proof that the new improved version of the KMG model is locally asymptotically stable. |
| first_indexed | 2024-03-13T08:52:48Z |
| format | Article |
| id | doaj.art-fb86b12a8ce54ff0b172630bb0ee1737 |
| institution | Directory Open Access Journal |
| issn | 2450-0097 |
| language | English |
| last_indexed | 2024-03-13T08:52:48Z |
| publishDate | 2023-04-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Economics and Business Review |
| spelling | doaj.art-fb86b12a8ce54ff0b172630bb0ee17372023-05-29T10:53:48ZengSciendoEconomics and Business Review2450-00972023-04-0191266410.18559/ebr.2023.1.2On the stability of a certain Keynes-Metzler-Goodwin monetary growth modelSołtysiak Damian01Department of Applied Mathematics, Poznań University of Economics and Business, al. Niepodległości 10, 61-875Poznań, PolandThe article has three aims. The first aim is to develop an improved version of the Keynes-Metzler-Goodwin (the KMG) monetary growth model originally presented and analysed in a series of publications by Carl Chiarella, Peter Flaschel and Willi Semler. The improvement of the model is obtained by modifying some of its equations in a way which ensures that they reflect real macroeconomic dependencies more properly. The equations that have been modified describe final demand expectations, determinants of production decisions, fixed capital accumulation, tax revenues, government budget deficit and money demand. The second aim is to transform the model into an intensive form described by seven non-linear differential equations and determine its unique steady state which shows proportions between variables on the balanced growth path. The third ultimate aim is to present a mathematical proof that the new improved version of the KMG model is locally asymptotically stable.https://doi.org/10.18559/ebr.2023.1.2keynesian macroeconomicsdisequilibrium macroeconomicsmonetary growth modelsnonlinear economicdynamics stabilityc62e12e40 |
| spellingShingle | Sołtysiak Damian On the stability of a certain Keynes-Metzler-Goodwin monetary growth model Economics and Business Review keynesian macroeconomics disequilibrium macroeconomics monetary growth models nonlinear economic dynamics stability c62 e12 e40 |
| title | On the stability of a certain Keynes-Metzler-Goodwin monetary growth model |
| title_full | On the stability of a certain Keynes-Metzler-Goodwin monetary growth model |
| title_fullStr | On the stability of a certain Keynes-Metzler-Goodwin monetary growth model |
| title_full_unstemmed | On the stability of a certain Keynes-Metzler-Goodwin monetary growth model |
| title_short | On the stability of a certain Keynes-Metzler-Goodwin monetary growth model |
| title_sort | on the stability of a certain keynes metzler goodwin monetary growth model |
| topic | keynesian macroeconomics disequilibrium macroeconomics monetary growth models nonlinear economic dynamics stability c62 e12 e40 |
| url | https://doi.org/10.18559/ebr.2023.1.2 |
| work_keys_str_mv | AT sołtysiakdamian onthestabilityofacertainkeynesmetzlergoodwinmonetarygrowthmodel |